CubeSmart Announces Leadership Changes After Investing.com COO Retires
MALVERN, Pa. – CubeSmart (NYSE: NYSE: ), a self-managed real estate investment trust with a market capitalization of $9.38 billion, announced today that Joel Keaton, the company’s Chief Operating Officer, will retire on April 30, 2025. Following his retirement, Keaton will move into an advisory role to help with the transition. According to InvestingPro according to the data, the company’s stock has seen a 13% decline in the past six months, although it has maintained an EXCELLENT financial health rating.
In anticipation of Keaton’s departure, CubeSmart has promoted Amy Cross to executive vice president, overseeing technology, data science and marketing. Cross, previously senior vice president of information technology and revenue management, has been with CubeSmart for six years. Her mandate includes leading significant advances in the company’s IT and data operations. Prior to her time at CubeSmart, she served as vice president of digital technology and strategy at Aramark.
Guy Middlebrooks, currently senior vice president of third-party management, will step into the role of executive vice president of operations. With 19 years at CubeSmart, Middlebrooks has been instrumental in expanding the company’s managed portfolio. His new responsibilities will include field operations, third-party management and store transitions.
Christopher Marr, president and CEO of CubeSmart, expressed his gratitude to Keaton for his nearly 15 years of service and strategic contribution to the company’s growth. Marr also expressed confidence in Cross and Middlebrooks’ abilities to advance CubeSmart’s strategy and increase value creation.
CubeSmart, a top three owner and operator of self-storage facilities in the US, operates 1,528 self-storage facilities nationwide. The company is known for providing innovative solutions and services to solve the organizational and logistical needs of its clients. With a robust gross margin of 72.93% and a 21-year track record of consistent dividend payments, CubeSmart demonstrates strong operating efficiency. Discover deeper insights into CubeSmart’s performance metrics and future prospects with a InvestingPro subscription, which includes access to Pro Research’s comprehensive reports covering more than 1,400 of the top US stocks.
This leadership change is based on a CubeSmart press release.
In other recent news, CubeSmart, a real estate investment trust for self-storage properties, Jefferies cut its rating on the stock to “Hold” from “Buy” due to lower-than-expected occupancy rates in the fourth quarter. At the same time, RBC Capital Markets cut its price target on CubeSmart to $53, but maintained its Outperform rating. Despite a smaller decline in revenue in the third quarter of 2024, gains in other revenue offset this, with CubeSmart’s performance in New York highlighted as particularly strong.
Recent developments include CubeSmart’s ambitious expansion plans, aiming to add more than 130 stores annually, with two additional stores under contract for acquisition in the fourth quarter. The company also raised $32.8 million through its equity program, maintaining a strong financial position. Furthermore, CubeSmart’s full-year funds from operations (FFO) per share guidance remains unchanged, indicating confidence in its performance.
According to Jefferies, CubeSmart’s urban-focused portfolio may not benefit from the housing recovery to the same extent as its peers, potentially putting pressure on the company’s stock multiple. However, RBC Capital Markets remains positive about CubeSmart’s solid market position and its ability to navigate the competitive environment in the self-storage industry. Despite the regional decline, CubeSmart reported a 7.4% increase in rental income in the New York MSA and a 10% increase in marketing spend year-to-date to boost demand amid competitive challenges.
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